Credit Supply and Corporate Innovation

Mario Daniele Amore, Cédric Schneider, Alminas Zaldokas

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

We present evidence that banking development plays a key role in technological progress. We focus on firms’ innovative performance, measured by patent-based metrics, and employ exogenous variations in banking development arising from the staggered deregulation of banking activities across U.S. states during the 1980s and 1990s. We find that deregulation had significant beneficial effects on the quantity and quality of innovation activities, especially for firms highly dependent on external capital and located closer to entering banks. Furthermore, we find that these results are partly driven by a greater ability of deregulated banks to geographically diversify credit risk.
We present evidence that banking development plays a key role in technological progress. We focus on firms’ innovative performance, measured by patent-based metrics, and employ exogenous variations in banking development arising from the staggered deregulation of banking activities across U.S. states during the 1980s and 1990s. We find that deregulation had significant beneficial effects on the quantity and quality of innovation activities, especially for firms highly dependent on external capital and located closer to entering banks. Furthermore, we find that these results are partly driven by a greater ability of deregulated banks to geographically diversify credit risk.

Conference

ConferenceEuropean Economic Association & Econometric Society
LocationUniversity of Málaga
CountrySpain
CityMálaga
Period27/08/201231/08/2012
Internet address

Keywords

    Cite this

    Amore, M. D., Schneider, C., & Zaldokas, A. (2012). Credit Supply and Corporate Innovation. Paper presented at European Economic Association & Econometric Society , Málaga, Spain.DOI: 10.2139/ssrn.2022235
    Amore, Mario Daniele ; Schneider, Cédric ; Zaldokas, Alminas . / Credit Supply and Corporate Innovation. Paper presented at European Economic Association & Econometric Society , Málaga, Spain.49 p.
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    Amore, MD, Schneider, C & Zaldokas, A 2012, 'Credit Supply and Corporate Innovation' Paper presented at, Málaga, Spain, 27/08/2012 - 31/08/2012, . DOI: 10.2139/ssrn.2022235

    Credit Supply and Corporate Innovation. / Amore, Mario Daniele; Schneider, Cédric; Zaldokas, Alminas .

    2012. Paper presented at European Economic Association & Econometric Society , Málaga, Spain.

    Research output: Contribution to conferencePaperResearchpeer-review

    TY - CONF

    T1 - Credit Supply and Corporate Innovation

    AU - Amore,Mario Daniele

    AU - Schneider,Cédric

    AU - Zaldokas,Alminas

    PY - 2012

    Y1 - 2012

    N2 - We present evidence that banking development plays a key role in technological progress. We focus on firms’ innovative performance, measured by patent-based metrics, and employ exogenous variations in banking development arising from the staggered deregulation of banking activities across U.S. states during the 1980s and 1990s. We find that deregulation had significant beneficial effects on the quantity and quality of innovation activities, especially for firms highly dependent on external capital and located closer to entering banks. Furthermore, we find that these results are partly driven by a greater ability of deregulated banks to geographically diversify credit risk.

    AB - We present evidence that banking development plays a key role in technological progress. We focus on firms’ innovative performance, measured by patent-based metrics, and employ exogenous variations in banking development arising from the staggered deregulation of banking activities across U.S. states during the 1980s and 1990s. We find that deregulation had significant beneficial effects on the quantity and quality of innovation activities, especially for firms highly dependent on external capital and located closer to entering banks. Furthermore, we find that these results are partly driven by a greater ability of deregulated banks to geographically diversify credit risk.

    KW - Financial development

    KW - Banking deregulation

    KW - Innovation

    KW - Patents

    U2 - 10.2139/ssrn.2022235

    DO - 10.2139/ssrn.2022235

    M3 - Paper

    ER -

    Amore MD, Schneider C, Zaldokas A. Credit Supply and Corporate Innovation. 2012. Paper presented at European Economic Association & Econometric Society , Málaga, Spain. Available from, DOI: 10.2139/ssrn.2022235